A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to $0. The first payment of $1 is made today. If the fund is used to purchase a ten-year level annuity with the first payment at twenty years from today, what is the amount of the level payment? (Assume an annual effective rate of interest of 4%.)
Q: Jane Joy, owner of the Clock Shop, loaned $12,000 to Carol Miller to help her open an Art Shop.…
A: Future value The amount that an investment today will grow at a given interest rate is called its…
Q: The Brendan Excavation Company replaced an old machine 11 years ago with a new one. They sold the…
A: Annual depreciation tax shield Annual depreciation tax shield is the annual depreciation times the…
Q: Given an annual rate of payment of f (t) 50e0.08t at time t for 7 years and a constant force of…
A: We have been provided with continuously varying payment stream and the force of interest. We have to…
Q: Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is…
A: Here, Time Period of Retirement (NPER) 30 Annual Investment (PMT) $14,000.00 Interest Rate…
Q: Pick a ratio and explain what it is and how it is used.
A: The major goal of ratio analysis is to identify numerous strengths and weaknesses of a company that…
Q: Rosens Department Store Tu's in Stock Stock at Inventory Records Date January 1 July 8 August 3…
A: FIFO means First In First Out i.e., materials purchased first is first sold out. Working Note #1…
Q: Too much information technology (IT)sophistication within the financial service industry has…
A: Information technology refers to the use of computer systems or technologies to obtain information…
Q: Which of the following statements is incorrect? If a firm's target average accounting return is…
A: 1) Average accounting return is the average net profit divided by the average book value of the…
Q: Andy invested $850 semi-annually for eight years at 6%, compounded semi-annually. What is the value…
A: Amount invested = $850 Time Period = 8 Years Interest Rate = 6%
Q: A stock's returns have the following distribution: Sharpe ratio: % Demand for the Company's Products…
A: Demand for the Company's Products Probability of this Demand Occurring (P) Rate of Return if this…
Q: A person has two investment alternatives, both of which are $15,000. first offers a payment of…
A: IRR In discounted cash flow analysis, the ratio that brings the NPV to zero is called the IRR. IRR…
Q: Please include the excel formula Suppose you bought a bond with an annual coupon of 6 percent one…
A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…
Q: Dantzler Corporation is a fast-growing supplier of office products. Analysts project the followin…
A: The value of company can be found as the present value of free cash flow taken on WACC as weighted…
Q: Docile Partners Limited (DPL) has two lines of business, organized as two divisions, A and B.…
A: A firm comprises of two divisions with separate identifiable cash flows and risk profile. We have to…
Q: You bought one of Great White Shark Repellant Company's 8 percent coupon bonds one year ago for…
A: Real return The return received from an investment or project after deducting the inflation rate and…
Q: For the following ordinary annuity, determine the size of the periodic payment Present Future Value…
A: Future value (FV) = $16,800 Quarterly interest rate (r) = 0.02075 (i.e. 0.083 / 4) Quarterly period…
Q: United Residential is a real-estate developer considering a 40-unit apartment complex in a growing…
A: Select cash flows from a real estate property are available. We have to find the minimum monthly…
Q: Sam Malone, vice-president of AMI, Inc. wishes to find the YTM on his company’s 10-year, 10% bond…
A:
Q: For a 10-year $1000 par value 10% annual coupon bond that is selling at a discount and makes…
A: Information Provided: Period = 10 years Par value = $1000 Annual Coupon Rate = 10%
Q: Anna holds a portfolio comprising the following 3 stocks: X, Y and Z. Investment Amount $'000 Beta…
A: Expected return of security depends on the risk free rate and beta and market rate of return. This…
Q: Your client, Tom, has come to you inquiring about retirement. He wants to know approximately how…
A: Given: Annual retirement amount “PMT” = $182365 Number of years post retirement = 90-64 = 26 Nominal…
Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…
A: Simple Interest: The simple interest mechanism is an interest charging mechanism that does not…
Q: Assume that you start with a $1000 dollar invested in each ETF at the end of 2003. Calculate the…
A: Amount invested in IWM is $1,000 Amount invested in EEM is $1,000 Value of EEM in 2019 is 3049.196…
Q: How much interest is earned in just the 48th year on a $ 50 dollar deposit that earns 5% interest…
A: Information Provided: Initial deposit = $50 Interest rate = 5% compounded annually Period = 48…
Q: Using Table 19-1 and Table 19-2 find the following premiums for a 10-year term life insurance policy…
A: Life insurance is quite essential part of life now days and it is used by everyone for the safety of…
Q: Round your answers to the nearest cent. a. What is the value of a stock if: Do $1.20 k = 13% 9 = 9%…
A: Dividend growth model The model, which assumes that the growth of dividends remains the same…
Q: the amount of ney that must be He now ( (0 interest, The amount of money that must be invested now…
A: More is compounding than more is the effective interest rate due to the compouding of the interest…
Q: For the given cost function C(x) = 10000 + 400x + x² find: a) The cost at the production level 1300…
A: Cost function is used to calculate cost of production for a specified no. of units produced. It…
Q: Twice a year for 6 years, Wendy Cortez invested $800 compounded semiannually at 12% interest. What…
A: Annuity due is the annuity payments or receipts at the start of the period. The value is computed as…
Q: Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r…
A: Future Value rate( r) Compounding frequency time in years $2,00,000.00 7.40% annually 5 $…
Q: Siven an effective interest rate of 6%, what is the present value of an annuity that pays $1 ime 1,…
A: Present value of annuity of arthmetic increasing annuity is the sum of uniform annuity and sum of…
Q: dividend payout ratios remain constant. What are the company's earnings before interest and taxes…
A: Information Provided: Interest rate = 7% Debt value = $95,000 Net Income = $16,000 Tax rate = 30%…
Q: The YTMs of coupon bonds are: YEAR YTM 1.25% 1 2 3 2.25% 2.75% 4.50% 14 8% What are the YTMs of the…
A: As per the given information: YTMs of coupon bonds: YEARYTM11.25%22.25%32.75%54.50%148% To…
Q: You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock…
A: Beta is systematic risk factor. We will calculate weighted average beta of the portfolio.
Q: Which of the following statements is correct about corporate bond/ A.The corporate bond with AAA…
A: Default risk means risk that issuer of the bond may fail to pay coupon or face value at the…
Q: Create a table with the price of the two bonds in the case where the discount rate is 8%, 11% and…
A: Information Provided: Par value = 1000 Coupon rate = 11% Bond X Period = 5 years Bond Y Period = 15…
Q: In the provided formulas, A is the balance in the account after t years, P is principal investment,…
A: The amount of interest earned depends on the compouding and more is the interest accumulated when…
Q: What will be the total cost of investment in bonds? Do the…
A: Given: Particulars Pleasant innovation D right Tried Years 20 20 Face value $100 $100 $1000…
Q: A company has a revenue plan of $1million. Over the year, the company does $1.3 million in revenue.…
A: Stakeholders The parties who are interested in the business are known as stakeholders. The parties…
Q: Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Return IWM…
A: From the closing value of IWM and EEM, over years, we have to find the average annual return for IWM…
Q: Larry wants to start an IRA that will have $620,000 in it when he retires in 26 years. How much…
A: Annuity refers to a series of regular payments being made for a defined period. If the payments are…
Q: The annual inventory of the following information for 20 inch tires. Quantity Date Jan 11 Mar 20 Jol…
A: The LIFO method of inventory valuation states that the most recent is sold before the first…
Q: A tractor costs $25,020, has an expected life of 12 years, and has a salvage value of $2,700. Use…
A: Depreciation is used to allocate the cost of an asset throughout its useful life. It provides the…
Q: Discuss about that how monetary policy is helpful for Economy.
A: Monetary policy plays an important role in the development of an economy. By pursuing expansionary…
Q: Consider the following information: State Probability Stock A Stock B Stock C Boom…
A: Solution:- Expected return on portfolio means the weighted average return of the assets in the…
Q: 4-year Drongo Corporation's bonds currently yield 7.2 percent and have an inflation premium of 3.6%.…
A:
Q: Private equity and investment banking both raise capital for investing purposes, but they do so in…
A: Although both private equity and investment banking raise money for investments, they do so in…
Q: Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers…
A: Effective interest rate is interest rate after considering the impact of compounding on the interest…
Q: The personal tax on interest payments is 33%.The personal tax rate on equity capital gain is 15%.The…
A: Information about personal taxes on different instruments of finance had been provided. We have to…
Q: What is arbitrage? Indicate the forms of arbitrage that we can apply to the foreign exchange market.
A: We have to explain the term arbitrage and identify the forms of arbitrage that can be applied to the…
Step by step
Solved in 2 steps
- FV = $ 3) Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT [See Quick Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $20,000 in a fund paying 2% per year, with monthly payments for 5 years PMT = $ 4)Show Solution. Topic: Perpetuities 4. What amount is required to fund a perpetuity that begins annual payments of P50,100 immediately, if the funds can be invested to earn 11% compounded quarterly?5. A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to $0. The first payment of $1 is made today. If the fund is used to purchase a ten-year level annuity with the first payment at twenty years from today, what is the amount of the level payment? (Assume an annual effective rate of interest of 4%.)
- What is the monthly payment for a home costing $475,000 with a 20% down payment and the balance financed for 30 years at 6.5%? (a) State the type. A. present valueB. future value C.ordinary annuityD.amortizationEsinking fund (b) Answer the question. (Round your answer to the nearest cent.)Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $50,000 in a fund paying 3% per year, with quarterly payments for 20 years PMT= $ _______ ??Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $30,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT = $ please round it to the nearest cent
- Find the periodic payments PMT necessary to accomulate the given account in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $20,000 in a fund paying 2% per year, with quarterly payments for 20 years. PMT = $For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking Fund Payment Payment Frequency Time Periods (years) Nominal Rate (%) Interest Compounded Future Value (Objective) $______ every year 14 8 annually $350,000You deposit $9500 per quartely for 1 years at i, = 8.31 %. This fund then provides for a perpetuity of $6100 per year, with the first payment made n month after the final deposit. At the time of the first perpetuity payment, interest rates fall to i, = 2.37 %. Find n. %3D Answer: 30.36
- Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT [See Quick Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $70,000 in a fund paying 3% per year, with monthly payments for 10 years, if the fund contains $50,000 at the startA lump sum S deposited into either fund X or fund Y will be exactly sufficient to provide a perpetuity of $100 per year with the first payment due at the end of one year. Fund X will earn interest at an effective annual rate of 10% for the first 30 years and 6% thereafter. Fund Y will earn interest at a level effective annual rate of j. In which of the following ranges is j? someone help?Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $50,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT = $ Need Help? Read It Watch It